Estimated LDPE consumption up 25% in Russia in January

MOSCOW (MRC) -- Estimated LDPE consumption went up by 25% (to 37.63 kt) in Russia in January 2010, compared to the same period last year - according to MRC Monthly Report.

LDPE output moved at 59.09 kt in January. Production decreased 3% compared to December 2009. The most serious decrease in LDPE output (by 19%) was recorded at Ufaorgsyntez.


Shipments to the domestic market were seriously limited by high exports (23.04 kt). The situation in the Russian LDPE market became more stable at the end of February because producers had cut down their exports.

LDPE imports fell by 67% compared to December. Imports of Polymir's material did not exceed 20 mt. In 2009, supply of Polymir's material moved at 43% of overall LDPE imports. Supply of Russian oil to Belarusian refineries was stopped at the beginning of 2010, and that was the reason of a serious decrease in utilization of LDPE production capacities at Novopolotsk.

MRC

For more detailed information on the Russian PE market, see Monthly Report.

Dow raises prices for ABS and SAN

March 5 (plasteurope) -- Dow Europe has announced a price increase of EUR 120/t, effective immediately, for its ABS and SAN resins sold in Europe, the Middle East, Africa and India. Dow's last price increase for the resins marketed under the trade names ⌠Magnum (ABS) and ⌠Tyril (SAN) was announced for early January.

The US group has just revealed plans to sell its worldwide Styron business, including ABS and SA, to Bain Capital.

MRC MRC Reference

SABIC to showcase commitment to Mexican market with advanced high-end materials

March 5 (adsalecprj) -- SABIC Innovative Plastics will exhibit at Plastimagen Mexico 2010 in Mexico City, March 23-26 where the company will showcase the advanced thermoplastics technologies and dedicated on the ground support it is delivering to its customers in this important growth region. The company will feature a broad range of high-performance and sustainable products for the Mexican market for industries ranging from automotive, appliances, and building and construction to aerospace, electrical, transportation, and emerging sectors.

SABIC Innovative Plastics' high-performance materials technologies that will be on display include:

- STAMAX composite, long fiber structural materials, offering three key advantages: a density that is typically 10 - 25 percent lower than traditional materials and hence lighter weight; a better surface finish than short glass fiber products which enables molded in color solutions; and a 10 -15 percent potential reduction in cycle times.

- Cycolac* ABS resin, manufactured at SABIC Innovative Plastics' Tampico, Mexico facility providing ultraviolet (UV) resistance to outdoor lighting applications, and enhanced flame retardance to electrical applications such as washing machine laundry covers, and control panel housings.

- Ultem PEI resin-based structural composites for aircraft bins and floorings; Ultem foams for lightweight cores; and Ultem fibers for carpets and fabrics.

mrcplast.com

MRC Reference

Sabic. The share in the Russian market in 2008:
PE - 0.2%;
PP - 0.4%;
PS - 0.2%.

Annual sales growth in Russia over the last 5 years:
PE - 33%;
PP - 62%.


BASF provides exclusive technology for run-flat tires

March 5 (adsalecprj) -- BASF Polyurethane Solutions announced that it has entered into an agreement with Dynamic Runflats, Inc. (DRI), a wholly owned subsidiary of Defense Venture Group based in Indian Land, South Carolina, to manufacture and market run-flat tire components and systems for military and other applications.

BASF brings to the agreement two technologies that form a system to help enable tires to run when flat. BASF's proprietary elastomer technology, Elastocast, is molded into specially designed parts, and inserted into tires so that if the tire loses air pressure the vehicle would still maintain control and stability allowing drivers the opportunity to delay fixing the flat until they are in a permissive location to accomplish the repair. The other part of BASF's proprietary system is a polyurethane foam technology, Elastofoam, which helps hold the elastomer inserts in place within the tire cavity. "DRI selected the BASF Polyurethane technology because it truly stood out and performed better than any other technology available today," said Mike Marquart, General Manager of DRI.

BASF's polyurethane technology passed rigorous testing to meet all military requirements. In fact, BASF's polyurethane system proves extremely ballistic resistant, even 50 caliber rounds pass through without affecting the runflat.

In addition, the design of the run-flat tire that uses BASF's technology is 60 percent faster to install than currently used technology and no special tools are required. "'No tools required' is very important in military theater operations," said Marquart.

The first vehicle to be built using this proprietary run-flat tire technology was unveiled in North Carolina in late February.

MRC

MRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding.

Ineos considers move to Switzerland to save tax

March 5 (prw) -- Polymers and petrochemicals group Ineos is considering a relocation of its headquarters and tax residence from the UK to Switzerland. It said potential cash tax savings would be ┬450m between now and 2014 if it went ahead with the move, which would need the consent of its lenders.

Ineos said its day-to-day operations in the UK and locations around the world would remain unaffected by the plan. But the transfer of its headquarters would be a symbolically charged move for a company set up as a UK business by its chairman Jim Ratcliffe.

Ineos was formed in 1998 and has grown quickly through acquisition to be the world's third largest chemical company, with leading positions in polyolefins, vinyls and styrenics. Milestones over the past 12 years have included its acquisition of BP's polyolefins business in 2005 and Hydro Polymer in 2008.

The group employs 15,500 people across 64 plants in 14 countries, with 70% of its revenue coming from outside the UK. But its links to the UK are still strong, with 3,700 permanent staff employed at eight UK sites.

In a statement, it said: ⌠[The ┬450m tax] saving would further support investment in skills, plant and technology, considered by the company to be critical to driving future growth and competitive advantage. Irrespective of this change Ineos remains committed to its UK operations.

Tom Crotty, chief executive of Ineos, said: ⌠We have to make a decision that is right for Ineos, our businesses and our sites, to ensure we remain competitive long-term in a global marketplace. Many leading chemical companies have European or global operations resident in Switzerland and we need to compete effectively with them.

⌠We remain committed to the UK and our facilities will continue to play an essential part in the long-term growth of Ineos. Investment in people skills, plant and technology is an important element of our ongoing competitiveness and the change of tax residence would allow us to increase investment to the benefit of all stakeholders in our business.

Last year, the group reached agreement after lengthy negotiations with its lenders for a restructuring.

Ineos said it ⌠has weathered the current recession well. It has stabilised its business, is trading in line with its business plan and its financial performance is expected to improve further over the longer term.

MRC

MRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.